Bill Text: OR SB35 | 2013 | Regular Session | Enrolled
Bill Title: Relating to limits on loans made by the Department of Veterans' Affairs; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2013-05-31 - Effective date, May 23, 2013. [SB35 Detail]
Download: Oregon-2013-SB35-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 35
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Veterans' Affairs)
CHAPTER ................
AN ACT
Relating to limits on loans made by the Department of Veterans'
Affairs; amending ORS 407.225 and 407.305; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 407.225 is amended to read:
407.225. (1) When the Department of Veterans' Affairs receives
an application pursuant to ORS 407.205, the department shall
immediately investigate and process it as provided by law. The
security for the loan shall consist of the property to be
acquired by the veteran as a home or a farm. The security shall
be secured by a mortgage or security agreement in the full amount
of the loan which mortgage or security agreement shall be either
a first lien or a lien insured by mortgagee's title insurance
against loss from any prior encumbrance. The department may make
subsequent loans for improvements to the security if there are no
intervening liens between the first lien of the department
created under this section and the recorded liens upon the
security securing repayment of such subsequent improvement loans.
Such consecutive liens, for the purposes of this chapter, shall
be deemed collectively as a first lien upon the security. The
mortgage or security agreement shall provide that the borrower,
or any subsequent owner of the secured property, may pay all or
any part of the loan at any time without penalty.
(2) A mobile home shall be secured by a security agreement in
the full amount of the loan and the department shall perfect a
security interest in favor of the State of Oregon. The security
agreement shall provide that the borrower or any subsequent owner
of the mobile home, may pay all or any part of the loan at any
time without penalty. The security agreement shall provide for
immediate acceleration of the unpaid balance of the loan if the
mobile home is moved from the original site listed in the
security agreement without first obtaining the written consent of
the department. The security agreement shall also provide that
removal of the mobile home to a site outside of this state shall
constitute an act of default and result in immediate acceleration
of the unpaid balance of the loan.
(3) Loans may not exceed:
Enrolled Senate Bill 35 (SB 35-INTRO) Page 1
{ - (a) 100 percent of the net appraised value on homes that
are real property; - }
{ + (a) The maximum loan-to-value ratio or combined
loan-to-value ratio permitted by the United States Department of
Veterans Affairs for its Home Loan Guaranty Program (38
U.S.C. 3701 et seq.; 38 C.F.R. part 36); + }
(b) 85 percent of the net appraised value on homes that are not
real property; and
(c) 90 percent of the net appraised value on farms that are
real property.
SECTION 2. ORS 407.305 is amended to read:
407.305. When a veteran who is eligible for a loan under this
chapter and Article XI-A of the Oregon Constitution seeks to
acquire a home or farm that is serving as security for a previous
loan made under this chapter, the veteran may choose either to
receive a new loan for the property or to assume the previous
loan. If the loan balance for the loan being assumed does not
exceed the amount of the veteran's entitlement under ORS 407.205,
the interest rate to be paid on the assumed loan balance shall be
the rate per annum prescribed under ORS 407.315. In addition to
the amount assumed, the veteran may apply for and receive
additional funds to be applied to the purchase price. The
interest rate to be paid on the additional funds shall be the
rate per annum currently prescribed under ORS 407.325. The sum of
the assumed loan balance and the additional funds shall not
exceed the amount of the veteran's entitlement under ORS 407.205
or the
{ - percentage of the net appraised value - } { + maximum
loan amount + } prescribed by ORS 407.225 (3). An assumption or
an assumption with additional funds under this section shall be
deemed to be one loan and the veteran making the assumption or
the assumption with additional funds shall be deemed to be a
borrower for the purposes of ORS 407.145, 407.205, 407.215,
407.325, 407.385, 407.465 and 407.475.
SECTION 3. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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Passed by Senate April 3, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House May 14, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 35 (SB 35-INTRO) Page 2
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 35 (SB 35-INTRO) Page 3
